Based on data provided by An Allianz Trade study, 69% of French businesses say they had experienced at least one fraud attempt in 2022 and 57% report proven fraud. What does that mean in concrete terms? What sectors are affected? Let's find out in this article.
Fraud is a phenomenon that affects all business sectors.
In the financial field, there are no less than a hundred different forms of fraud, according to the Ministry of Economy and Finance. Document fraud is the main form of fraud in banks, credit organizations and factoring services.
These false documents are used to obtain credits, open fake accounts, finance false invoices, launder money or, in the most extreme cases, to participate in the financing of terrorism. In these various cases, it is important for banks to protect themselves against these frauds.
In the case of factoring, the verification of invoices is necessary in order not to engage in fraudulent documents and thus lead to unpaid invoices. The company Urica In particular, it went out of business because of false invoices.
🎁 Bonus: to better understand this case, you can find out our article on factoring fraud for Urica.
Bank fraud amounted to 1.24 billion euros in France in 2021. The check is one of the easiest ways to defraud today, even if the volume has been decreasing since Covid-19. It is therefore estimated that bank fraud represents more than 3% of French fraud.
While bank fraud is significant in France, insurance fraud is not negligible. In 2021, One person out of 5 declares to have already carried out insurance fraud. This data is constantly evolving, especially since the digitization of all insurance files.
For an overview of existing fake documents, read our corresponding article: What are the different types of forged documents?
Indemnity fraud in the insurance sector refers to any deliberate attempt or intentional act to obtain compensation in violation of the insurance contract. Compensation fraud is a crime that is considered to be a breach of trust in the insurance company concerned.
Example: water damage has occurred in my home, only my television stand and my ceiling are damaged. However, in order to obtain higher compensation, I am going to change the bill for my television cabinet as well as the bill for repairs to the ceiling by inflating the numbers. This procedure is very simple and thus creates a loss of insurance.
Insurance premium fraud involves taking out insurance contracts in order to receive premiums that should not be due.
example : I have a lot of claims on my car, I have a significant penalty, however, I will change my certificate and take out new insurance in order to then obtain bonuses and not to bear the burden of my penalties.
Claims fraud consists in simulating a claim in order to obtain compensation for an accident or death.
Example: I declare a claim and falsify an invoice that I send to my insurance company to obtain benefits when this claim never occurred.
All of these frauds transmit documents, documents that may have been falsified in order to carry out these frauds. It is essential for insurers to verify the veracity of the documents provided. These frauds are causing considerable losses today: between 5 and 10% of insurance turnover.
Real estate fraud is becoming more and more frequent. In 2020, 11% of files contained a falsified document compared to 20% in 2021.
Real estate fraud concerns owners and real estate agencies in particular.
It is considered that 20% of tenant files contain a false document in France in 2022. This sometimes leads to unpleasant surprises for landlords with tenants who are not able to pay their rent. Since insurance for unpaid rent is only available to students, some landlords find themselves without payment from tenants with difficulty getting them to leave. Indeed, the expulsion procedure is a procedure long (between 18 and 24 months) and expensive. During this period, no cash flow is made, however, the owner must continue to pay: charges, credits, etc.
The shortfall can therefore be considerable for owners. It is therefore essential to check the authenticity of the documents in order to ensure the solvency of the tenants.
More broadly, fraud exists in many sectors. To go further on The different types of fraud you can find our explanatory article here. Indeed, fraud represents 42 billion losses per year, half of which are for the private sector. All businesses are affected, regardless of sector or size.
To note : all sectors of activity are now victims of fraud, so it is absolutely essential to know how to protect yourself from fraud and thus avoid losses that could be linked to it.
It is important to identify all the frauds that the company will and may face.
Knowing the risk better means better protecting yourself from it. If you are looking to fight document fraud, call us!
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